P&G hits economy shampoo mart

Competition in the Rs 1,100 crore Indian shampoo market is set to hot up. Procter & Gamble, the US consumer products multinational which so long has focussed on premium line, is entering the economy segment of the shampoo market, hitherto led by domestic giant Hindustan Lever Ltd.

P&G has quietly launched its third largest shampoo brand, Rejoice, in India with an aim to capture a foothold in the mass market.

When contacted, Procter & Gamble sources confirmed the development, but refused to divulge more details.

After a gap of over six years, P&G is launching one of its mega brands in the country. In 1997, it had launched the premium Head & Shoulders brand.

Priced at Rs 39 for an 100 ml pack, Rejoice is positioned against HLL's Clinic Plus that is priced at Rs 37.50 for 100 ml.

Leo Burnett, that ad agency which has the Rejoice account, will soon launch a campaign on the new product.

Sunsilk from HLL's stable is sold at Rs 50 for 125 ml, while P&G's Head & Shoulders is priced at Rs 64 for a 100 ml pack, and Pantene at Rs 61 for similar pack.

HLL is the top dog in the shampoo market with a share of 54 per cent, with Procter & Gamble sharing of about 15 per cent. P&G's main brands, Pantene and Head & Shoulders, are positioned in the premium segment of the market.

Recently, P&G has shifted its strategy from being value-driven to volume-driven and has undertaken price cuts to enhance its share in the market.

Rejoice will be imported and sold India like it does for Pantene and Head and Shoulders. The US multinational has stopped local manufacturing of shampoos in 2000.